It is time to buy EUR/GBP - JPMorgan

FXStreet (Bali) - Late last week, JPMorgan FX Strategists sent a note to clients, recommending to buy EUR/GBP at 0.7971, with stop at 0.7850.

Key Quotes

"GBP longs are crowded and is thus vulnerable to deleveraging brought about by higher market volatility, investors are unprepared for a anything other than robust economic data having been spoiled for well over a year now by solid 3% growth. The combination of crowded longs, loss in data momentum and the approaching Scottish referendum makes us bearish on Sterling and we recommend adding to GBP shorts (we already have shorts vs. USD). Moreover, EUR/GBP looks too low on our fair value model."